How Delhi Elections Would Impact The Market?

By siliconindia | Friday, 06 February 2015, 13:33 Hrs

BANGALORE: Delhi Elections are breezing in and swarming daily tabloids. The campaign for the much-talked-about political episode came to an end on Thursday. Smear campaign have always been a part of elections in India.

Delhi Elections 2015 Recently, people dealing in the market anticipate a correction if Bharatiya Janta Party encounters a defeat in the upcoming Delhi Elections to be held on 7^th February. Arvind Kejriwal from the Aam Aadmi Party is being predicted to win the gamble this time, reports rediff.com

With Congress playing inert this time, the actual clash is between BJP and AAP who are being estimated to secure 19-37 and 28-46 seats.

“An adverse showing in the Delhi polls (by the BJP) will indicate the momentum has slowed from the May Lok Sabha elections and the subsequent Assembly polls,” Bank of America Merrill Lynch (BofAML) said in a note.

G Chokkalingam, Founder and Managing Director of Equinomics Research and Advisory, said, “Even if the BJP does not get a majority in the Delhi Assembly, that will not upset or change things in the Lok Sabha or the Rajya Sabha, as Delhi has very few seats, if one looks at the entire composition of these two Houses of Parliament.”

Jyotivardhan Jaipuria and Anand Kumar, BofAML analysts, are of the view that BJP’s defeat in these elections will not bring about changes to central government. However, the question is if the outcome of these elections would strike the image and fame ongoing in India or is it just a local subject.

The market is witnessing increased liquidity in new paper supply. Divestiture in Coal India added 30,000 crore in seven days.

“We think the market is likely to see a correction of about five percent over the next two months on account of the supply of paper, rich valuations and weak earnings. A loss for the BJP in the Delhi polls could provide an excuse for the correction,” said the BofAML analysts.